We’ve signed agreements with Steel Reef Infrastructure Corp. to purchase up to 125 megawatts (MW) of natural gas-generated power. Steel Reef will generate the power at 5 of its Saskatchewan gas processing sites, and we’ll purchase up to 25 MW from each facility.
Out of the 5 sites, 4 are located in the southeast part of the province, and one is at Coleville, near Kindersley. The facilities are expected to begin providing power to the grid by as early as 2027.
Why Cogeneration?
We continue to diversify our power system to lower greenhouse gas (GHG) emissions. We’re committed to achieving a net-zero GHG emissions grid by 2050 or sooner.
The facilities will use associated gas to generate power. Associated gas is a byproduct of oil and gas production. This power will also be available in the short term as we continue to transition the power grid to phase out coal by 2030 to meet federal regulations.
There’s no one source that can meet all of our province’s needs. It’ll take a combination of sources to provide reliable, sustainable, cost-effective power into the future. Visit Balancing Supply Options to learn more.
Project Benefits
The partnership with Steel Reef allows us to secure reliable, low-cost baseload power to meet future supply needs.
We’ll enter into 5 Power Purchase Agreements (PPAs) to purchase up to 25 MW from each Steel Reef facility. The PPAs will expire in 2049.
